Media

Student housing on former Velvet Cloak site sells

Tuesday January 22, 2019

A new student housing development built on the former site of the Velvet Cloak Inn in Raleigh has sold for $52.74 million.

Atlanta-based Peak Campus and capital partner Blue Vista Capital Management closed on a deal for the 150-unit Signature 1505 complex earlier this month, selling it to the Preiss Company, according to Wake County records.

Built in 1962, the 174-room Velvet Cloak Inn was once a stopover spot for politicians and N.C. State University alumni before being converted into residential condominiums in the mid-2000s. But after years of neglect and legal maneuvering with former condo owners, the managers of the property began entertaining offers in 2015.

Peak Campus and Blue Vista finalized the purchase of the hotel property in 2016 and began demolition a year later.

Today, the student housing complex totals nearly 200,000 square feet, in addition to a parking deck. The units have enough beds for more than 500 students.

The Preiss Company is based in Raleigh and is among the largest privately-held student housing companies in the country. It owns 17 properties in Raleigh, including four properties on Hillsborough Street, according to its website. Signature 1505 is located at 1505 Hillsborough St.